Greetings, friends. It’s John Foster. Now, I want to give you another binary options technical analysis strategy. Actually, technical analysis is most popular among forex and options traders. Strategies based on it are by far simpler than fundamental ones. They sometimes require drawing figures or lines in the chart, and sometimes the analysis is visual, without additional drawing.

“Bouncing Off The Line” strategy is the adjusted version of trading via corrections, and sometimes one can even estimate the turn of the trend with all advantages. You can study the strategy via this article for more accurate and profitable trading. And use the improved version! Further, you will get the full step-by-step instruction, and several nuances and tips for traders choosing this strategy will be given as well.

Contents:

Binary Options Technical Analysis Strategy “Bouncing off the Line”!

The main essence of the strategy is in drawing support and resistance lines (levels which the price repeatedly tries to break, but unsuccessfully) and opening orders for the bouncing off it. You are likely to comprehend the following instruction:

Step 1! You have to find a suiting situation with any available asset. It can be the flat, when the chart can’t break through two straight lines, as in the image above, or the trend, where we can build support and resistance lines, as in the image below. You are recommended to look for the situation in all available assets: currency, share, precious metals, because such thing doesn’t happen very often.

Step 2! Once the needed situation if found – start drawing support and resistance lines at maximums and minimums of the chart.

Step 3! Once the price reaches the drawn line, enter the market in the opposite direction, engaging for the bouncing off the line. For example, if the chart reaches the support level (built at minimums), then you have to buy a Call option (higher), and if the chart reaches the resistance level (built at maximums) – buy a Put option (lower). In most cases the price bounces off your level, and you get profits.

Step 4! If the price breaks your level, enter the market in the direction of the new trend, because the trend is likely to have been changed. If the support level is broke, - buy a Put option, and if the resistance level is – buy a Call option. With that, the first option for bouncing off if lost, so place a double bet. The simple example:

The price reaches the support level (built at minimums), and you buy a Call option for 20 $. The price breaks this level and goes down, which means the tendency changes to downtrend. You open another position, but for falling (buying a Put option) for 40 $. With 95% chance the first option will close with loss, and you will gain 35 $ with the second. Intotal: 20 $ loss, and 35 $ profit. Youmakemoney.

Results of Testing!

The final version of the strategy was tested by me on the real account. There weren’t that many situations to engage this binary options technical analysis strategy, let alone I was trading for just 40 minutes a day. Nevertheless, I succeeded in opening 6 positions at it, and everything turned in profits, so I was satisfied. You can see the result of my orders in the screenshot below.

Some Nuances of the Strategy!

If the price bounces off the level 2 times – this level can be considered resistance or support. But if the bounce occurs more 6 times from the same level, you are not recommended to enter the market for another bouncing, as the trend is very likely to change. You’d better wait until the price breaks this level and open positions of the new trend.

If you find only support or resistance level (one of them) at the chart, then you still can use the strategy for the only line – it will work anyway.

Most flats occur in Pacific (Australian) session. Thus, be online and ready at this time, and you will get most profits!

Recommended deposit for trading is 200 $ and higher. If you have less funds in disposal, you won’t be able to engage the 4th step of the strategy, which cuts losses and increases profits.

Advantages of the Strategy!

1. This binary options technical analysis strategy lets you not only gain with corrections and bounces, but also predict the change of the trend. When the trend changes – you can open several trading orders in the same direction and gain from each of them, as you’ve estimated the trend from its very beginning, instead of when it has become visually noticeable. Most newbies can’t understand why when they visually estimate the trend and enter the market, the tendency changes at ones. It’s bot brokers’ fault. Trends are unstable, and one must trade with them from the very beginning, when it’s impossible to notice visually whether the trend has turned. “Bouncing Off The Line” offers such opportunity.

2. Despite of solid profitability of the strategy, it’s not that difficult and is approachable for beginners who study it thoroughly. When you become more experienced and professional trader, you will be able to use scaling and averaging the deposit, which will significantly increase the profitability.

3. You can trade with any timeframe of option using “Bouncing Off The Line” binary options technical analysis strategy. I recommend turbo-options, but if are comfortable with hour-long and longer tools, then you can work with standard binary options, offered by most brokers.

Finishing

As it turned, binary options technical analysis can be profitable and comprehensive at the same time, if one realizes the strategy fully. As for the conclusion, I’d like to add that situations suiting “Bouncing Off The Line” strategy are very rare and uncommon at the market, as it’s quite problematic to build a precise support or resistance line. As a result, you can open 5 positions today and nothing tomorrow. There are 2 ways to solve it: either get on time for Pacific session, or use the strategy as the additional one, combining with another as the base.